Accounting

Unit 7-Book of prime entry

The book of prime entry are:-
1. Cash book
2. Petty cash book
3. Sales journal
4. Purchases journal
5. Sales returns journal
6. Purchases returns journal
Sales journal:-this journal is written up using the
copies of the invoices sent to the customers.
1. When goods are sold on credit
-Enter the date, name of the customer and the
total of the invoice in the sales journal.
-Debit the customers account in the sales ledger
with the total of the invoice.
 2. At the end of the month
- Credit the sales account in the nominal ledger
with the total of the sales journal.
- This will now form the double entry for all the
individual debit entries in the sales ledger.
Sales returns journal:- this journal is written up
using the copies of the credit notes sent to the
customers.
1. When goods are returned by a credit customer
-Enter the date, name of the customer and the
total of the credit note in the sales returns
journal.
-Credit the customers account in the sales ledger
with the total of the credit note.

2. At the end of the month

-Debit the sales returns account in the nominal
ledger with the total of the sales returns journal.
-This will now form the double entry for all the
individual credit entries in the sales ledger.
 Purchases Journal- This journal is written up
using the invoices received from suppliers.
1. When goods are purchased on credit
-Enter the date, name of the supplier and the total
of invoice in the purchases journal.
-Credit the suppliers account in the purchases
ledger with the total of invoice.
2. At the end of the month
- Debit the purchases account in the nominal
ledger with the total of the purchases journal.
- This will now form the double entry for all the
individual credit entries in the purchases
ledger.
Purchases Returns Journal- This journal is written
up using the credit notes received from the suppliers.
The entries are summarized as follows:
1. When goods are returned to a credit supplier
-Enter the date, name of the supplier and the
total of the credit note in the purchases returns
journal.
-Debit suppliers account in the purchases ledger
with the total of the credit note.

2. At the end of the month

-Credit the purchases returns account in the
nominal ledger with the total of the purchases
returns journal.
-This will now form the double entry for all the
individual debit entries in the purchases ledger.